Chris Schutrups, managing director of the Mortgage Hut (pictured above), has claimed that innovation by niche lenders has enabled ‘mortgage prisoners’ to either remortgage or move home by switching to specialist banks with attractive rates and terms.

“These specialist lenders are operating in the gaps left by other banks, typically addressing customers with more complex needs rather than the ‘vanilla prime’ segments,” he added.

“This is great news for the likes of company directors, the self-employed, contractors and those with unconventional salary payments, such as aviation workers.

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“The challenger banks have been able to grow their market share, as they can respond to market opportunities quickly.” 

Chris explained that challenger banks have adopted the latest technology, are well capitalised and offer good customer service.

He also added they have the opportunity to take market share from the larger lenders, who are under pressure from low interest rates and are more risk-averse.

“All the major lenders are looking to increase their distribution in a more competitive market.

“While the future looks uncertain with Brexit on the horizon and house prices softening, the large banks should be embracing niche markets, as they are growing in line with economic changes.

“The major lenders need to adapt to the changing workforce and respond to new trends in employment if they are to maintain and grow their market share.”